Abu Dhabi: Abu Dhabi World Financial Market (ADWFM) is expected to be operational before end of 2013 on Al Maryah Island, formerly known as Sowwah Island, with 100 per cent foreign ownership, tax and capital repatriation, well-informed sources told Gulf News.
“Although the ADWFM is scheduled to open by 2015; yet, due to the fast economic growth in the UAE with the major achievements in the field of energy, particularly in renewable energy, it is expected to open it end of 2013,” the sources added. “The system that the ADWFM will be following will be based on British law, which is one of the oldest schools in the world in terms of commercial laws,” the source said.
Wadah Al Taha, chief analyst and economist at Zarouni Group, told Gulf News that the ADWFM’s legal body requires 3-6 months to form. “The legislative platform should cover all stages and the formation of the legal body requires 3-6 months to constitute,” said Al Taha.
Amer Nouman Ashour, chief analyst and economist at CNBC Arabia, told Gulf News, that it is expected to be announced in the third quarter of 2013. Ashour added that the new financial free zone will offer 100 per cent foreign ownership and will be free from taxation, amongst other facilities extended to firms to have their businesses in Abu Dhabi.
“There are talks with the IMF and the World Bank to have their offices in the ADWFM. This will encourage international businesses to move to the new centre from other major financial centres in the region. Many companies will be moving their businesses from Saudi Arabia, Bahrain, Doha and even Dubai to Abu Dhabi due to the many facilities that will be extended in this regard,” said Ashour.
“Right now there is the International Financial Corporation [IFC], a member of the World Bank Group, in Dubai and though there is a talk that the IMF office and World Bank office to be moved to Turkey, there is a possibility that they will be moved to ADWFM due to the facilities that the Abu Dhabi government is extending,” said Ashour.
“Though the establishment of the ADWFM is somehow late, it is very promising for the economy of Abu Dhabi in particular, and the UAE in general,” said Ashour.
Al Taha said Abu Dhabi should have established the market in the beginning of last decade along with Dubai International Financial Centre (DIFC), established in 2004, with its own civil and commercial laws, its own courts and a financial exchange.
